TOCOM erases early losses, ends higher as yen weakens

Benchmark Tokyo rubber futures ended slightly higher on Monday, after hitting a one-week low earlier in the session, as the market came under pressure from a steep decline in Shanghai futures, brokers said.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, got support from the dollar's recovery against the yen following Friday's tumble after North Korea marked the anniversary of its founding without resorting to any further missile or nuclear tests.

The Tokyo Commodity Exchange rubber contract for February delivery finished 0.4 yen higher at 226.4 yen ($2.09) per kg. Earlier in the session, it hit a one-week low of 223.1 yen.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 455 yuan to finish at 16,665 yuan ($2,556.88) per tonne, after falling more than 4 percent to 16,320 yuan earlier, the lowest since Aug. 31.

The front-month rubber contract on Singapore's SICOM exchange for October delivery last traded at 166.80 U.S. cents per kg, down 2 cents. ($1 = 108.5800 yen) ($1 = 6.5177 Chinese yuan)